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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
OUR SUSTAINABILITY
PROGRAMMES
To manage and improve performance under the 10 material
issues identified, we have developed six programmes to
embed sustainability within our internal operational processes
and across our supply chains. For each material issue we
have set a baseline and the possible targets, guided by our
sustainability policies, principles and commitment.
GOVERNANCE AND INTEGRITY
Governance including transparency, business integrity and
anti-corruption, risk management
[material issue C]
We adhere closely to the principles and guidelines of the
SGX’s Code of Corporate Governance 2012, IndoAgri Code
of Conduct and other applicable laws, rules and regulations.
Corrupt and unethical behaviours are against our corporate
values of integrity and responsibility. However, as a company
we recognise that there is a risk of bribery and corruption
when we deal with our suppliers and contractors. For us, it is
clear that maintaining business integrity is essential to protect
the social fabric of the communities where we operate.
How we manage this
Our
Growing Responsibly
Programme sets the policy
framework for high standards of corporate governance and
professional integrity. All our business interactions must be
conducted in an ethical, honest and accountable manner, in
accordance with prevailing laws, rules and regulations. The
Board evaluates how well we manage governance and integrity
based on our Code of Conduct.
Since 2013, we have been publishing our annual sustainability
performance using the GRI standard. We have developed an
SMIS to monitor and ensure the consistent implementation of
our sustainability efforts across the Group.
See our Code of Conduct at
SUSTAINABLE PALM OIL SOURCING
Product traceability/Sustainable sourcing including
RSPO/ISPO
[material issue G]
Smallholders including plasma, social conflict resolution
[material issue F]
To produce sustainable products, it is important to know
whether the raw materials originate from sustainable sources.
This is particularly crucial from a food safety perspective.
For this purpose, we have extended our sustainability efforts
beyond our operations to include our supply chain. We
adhere to the principles and criteria of the RSPO, the highest
sustainability benchmark for the palm oil industry.
How we manage these issues
Our
Safe and Traceable Products
Programme ensures that all
products from our refineries and mills are traceable, safe and
beneficial for human consumption. It also ensures that CPO, the
main ingredient used in our products, is sustainably sourced.
Currently, our plantations supply approximately 70% of the
CPO used in our refineries, while third parties and smallholders
supply the remaining requirements. In 2014, we initiated
a partnership with the Sustainable Trade Initiative (IDH) to
train and guide these smallholders on RSPO compliance. We
also developed the Palm Oil Sourcing Policy and Responsible
Supplier guidelines to assist our CPO suppliers to follow our
sustainability efforts. The majority of them have acknowledged
our policy, and the audits on our CPO suppliers to ensure
compliance with our policy and guidelines will start in 2015.
Our aim is to certify all our nucleus plantations, including our
smallholders’, to RSPO standards by 2019.
Other key initiatives:
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seeds produced by our Bah Lias Research Station (BLRS).
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supplied by smallholders in South Sumatra.
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refineries.
Our
Smallholders
Programme covers our efforts with the
plasma and ex
-
plasma farmers, and supports the nucleus
-
plasma scheme through the development of inclusive supply
chains. We have extended our sustainability efforts beyond our
nucleus plantation operations to include our smallholders.
Other key initiatives:
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programme for plasma and ex
-
plasma smallholders
including training on sustainable agriculture.
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batch of smallholders for RSPO in 2015.
ENVIRONMENTAL PERFORMANCE
Carbon management including deforestation
[material issue A]
GHG emissions are a major contributor to climate change.
They can adversely impact ecosystems, air quality, agriculture,
and human and animal health.
Climate change is one of the biggest challenges the Indonesian
agriculture industry will have to face in the coming decades.
Our industry relies heavily on certain climatic conditions,
such as rainfall, for healthy growth of the plantation crops.
Environmental footprint including PROPER, ISO 14001
[material issue B]
The operations in our estates, refineries and mills are guided
by sound environmental management practices. This is a
result of local regulations, change in energy availability and
fuel prices, productivity and the aspiration to be a good
steward of natural resources.
As an agribusiness, we are faced with environmental issues such as
habitat loss, deforestation, irrigation, soil management, chemical
leachate, and preservation of genetic plant quality. Consequently,
we are adapting to the environment and changing the way we do
business. We recognise that land conservation and habitat loss
from deforestation are complex environmental and social issues.
In water
-
stressed regions or increasingly populous or
urbanised locations, the need to conserve water becomes
paramount. Soil is an important natural resource, and poor
